Financial Highlights

Letter to Shareholders

Responsibility

Business Review

  Philip Morris USA Inc.

  Philip Morris International Inc.

  Kraft Foods Inc.

Financial Review

  Management's Discussion and Analysis
     of Financial Condition and Results
     of Operations

      Description of the Company

      Executive Summary

      Critical Accounting Policies and Estimates

      Consolidated Operating Results

      2004 compared with 2003

      2003 compared with 2002

      Operating Results by Business Segment

          Tobacco

              Business Environment

              Operating Results

              2004 compared with 2003

              2003 compared with 2002

          Food

              Business Environment

              Operating Results

              2004 compared with 2003

              2003 compared with 2002

          Beer

          Financial Services

              Business Environment

              Operating Results

      Financial Review

      Market Risk

      New Accounting Standards

      Contingencies

      Cautionary Factors That May
         Affect Future Results

  Selected Financial Data–Five-Year Review

  Consolidated Balance Sheets

Financial Review (Continued)                    

   Consolidated Statements of Earnings

   Consolidated Statements of
      Stockholders' Equity

   Consolidated Statements of Cash
      Flows

   Notes to Consolidated Financial Statements

       1. Background and Basis of Presentation

       2. Summary of Significant Accounting
          Policies

       3. Asset Impairment and Exit Costs

       4. Miller Brewing Company Transaction

       5. Divestitures

       6. Acquisitions

       7. Inventories

       8. Finance Assets, net

       9. Short-Term Borrowings and Borrowing
          Arrangements

       10. Long-Term Debt

       11. Capital Stock

       12. Stock Plans

       13. Earnings per Share

       14. Income Taxes

       15. Segment Reporting

       16. Benefit Plans

       17. Additional Information

       18. Financial Instruments

       19. Contingencies

       20. Quarterly Financial Data (Unaudited)

   Report of Independent Registered     
      Public Accounting Firm

   Report of Management on Internal
      Control Over Financial Reporting

Board of Directors

Officers

Shareholder Information